Merchant & Gould is pleased to announce that client IPC Systems, Inc., has emerged victorious in two patent disputes with Cloud9 Technologies.
In January 2018, the Patent Trial and Appeal Board (PTAB) of the U.S. Patent and Trademark Office denied Cloud9 Technologies’ Inter Partes Review (IPR) petition challenging an IPC patent. That patent, known as the ‘566 patent, is at the heart of a lawsuit that IPC filed against Cloud9 in 2016. The lawsuit, which is pending in Delaware federal court, alleges that Cloud9’s “C9 Trader” platform infringes the ‘566 patent as well as a second IPC patent known as the ‘177 patent.
The ’566 and ‘177 patents are directed to web-based trading turrets and their use in trading communication systems. The lawsuit also alleges that that multiple Cloud9 employees misappropriated trade secrets from IPC.
The PTAB dismissed Cloud9’s IPR petition on January 10, ruling that Cloud9’s challenges against the ‘566 patent lacked merit because they “raised the same arguments and prior art presented previously to the Office.” That was the second victory for IPC relating to the ‘566 patent. In July 2017, the PTAB dismissed a petition that Cloud9 had filed under a different procedure known as a Covered Business Method Review (CBM). Like the IPR Petition, Cloud9’s CBM Petition challenged the patentability of the ‘566 patent and also was rejected by the PTAB.
The patents at issue are U.S. Patent No. 8,189,566 and 6,212,177. The ‘566 patent was drafted and prosecuted by Merchant & Gould attorney Jonathan Berschadsky. Jonathan and Michael Wagner represented IPC in the CBM and IPR.